Moderates uneasy with Obama plan

Moderate and conservative Democrats in the Senate are starting to choke over the massive spending and tax increases in President Barack Obama’s budget plans and have begun plotting to increase their influence over the agenda of a president who is turning out to be much more liberal than they are.

A group of 14 Senate Democrats and one independent huddled behind closed doors on Tuesday, discussing how centrists in that chamber can assert more leverage on the major policy debates that will dominate this Congress.

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Afterward, some in attendance made plain that they are getting jitters over the cost and expansive reach of Obama’s $3.6 trillion budget proposal.

Asked when he’d reach his breaking point, Nebraska Sen. Ben Nelson, one of the most conservative Democrats in the Senate, said: “Right now. I’m concerned about the amount that’s being offered in [Obama’s] budget.”

Another attendee, Sen. Mary L. Landrieu (D-La.), said she expected the newly formed caucus to shape Obama’s budget proposal as it moves through Congress.

“We want to give the president a chance, but our concern is going to be on the budget, looking forward,” Landrieu said. She added that she agrees with Obama that there needs to be “fundamental change” in fiscal policy, but she said “we do have to keep our eye on the long term, on intermediate and long-term fiscal responsibility.”

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Sen. Evan Bayh, the Indiana Democrat who assembled Tuesday’s skull session, added that he was “very concerned” about Washington’s level of spending, especially in a $410 billion “omnibus” spending bill to fund the government until the start of a new fiscal year in October.

As for the tax increases on high-income earners called for in Obama’s plan, Bayh said, “I do think that before we raise revenue, we first should look to see if there are ways we can cut back on spending.”

“The American people and businesses are tightening their belts,” Bayh added. “I think we need to show that the government can economize as well.”

The anxiety that moderate and conservative Democrats in the Senate are feeling about Obama’s agenda is potentially significant. In the House, moderate Democrats have much less leverage to slow action on a majority that under Speaker Nancy Pelosi is eager to embrace the boldest and most expensive parts in the agenda.

In the Senate, where it takes 60 votes to end debate, a few reluctant Democrats can cause big problems for Obama — a reverse of the dynamic that last month gave a few ready-to-bargain Republicans enormous clout in passing a major stimulus package.

It was that package, combined with at least $700 billion in bailouts to the financial sector, combined with the recently unveiled budget, that has some Democrats at the breaking point — even as most say they basically agree with Obama that massive intervention is needed to help a sick economy.

If the moderate Democrats in the Senate are willing to work with moderate Republicans — as Bayh said they are eager to do — they will negate the White House’s ability to portray opposition to Obama’s spending as partisan obstructionism.